Wallet provider Crypto.com and cryptocurrency trading and loan firm Genesis Trading are two of the most recent businesses to disassociate themselves from the FTX liquidity crisis.
The two businesses used Twitter to reassure clients of their modest exposure to the incidents that earlier today drove the cryptocurrency market into a frenzy.
Without specifically mentioning FTX, Genesis tweeted from its official company account:
With regard to today’s market events, we have managed our lending book and have no material net credit exposure. In addition, Genesis has no exposure to any tokens issued by centralized exchanges. We continue to meet the needs of our clients around the world across all products.
— Genesis (@GenesisTrading) November 8, 2022
Kris Marszalek, the CEO of Crypto.com, also spoke to the market via Twitter and stated that his company's exposure to the scenario was minimal. More than 70 million people utilize the cryptocurrency exchange. Marszalek shared:
Our direct exposure to FTX meltdown is immaterial: less than $10m in our own capital deposited there for customers’ trade execution.
— Kris | Crypto.com (@kris) November 9, 2022
That’s very little compared to our global revenues surpassing US$1 billion for two consecutive years.
A few hours after The Block revealed that FTX has ceased processing withdrawals, FTX founder Sam Bankman-Fried dropped the news that Binance planned to buy the non-U.S.-based company FTX.com earlier today. Other well-known cryptocurrency companies have since distanced themselves from the anticipated widespread impact, including Bitpanda, Circle, and Tether.
All of the company's devices are "completely working," according to BlockFi co-founder Flori Marquez, who also made it clear that the company is separate from FTX. The Block became aware of FTX's plans to buy BlockFi outright in June. Brian Armstrong, the CEO of Coinbase, added in a tweet that neither FTX nor its FTT token posed a serious risk to the cryptocurrency exchange.
A sad day for the industry.
— Kris | Crypto.com (@kris) November 9, 2022
This once again confirms that building with compliance and security as our foundational pillars is the right long term call.
After what he called "recent revelations," Binance CEO Changpeng Zhao tweeted on Nov. 6 that the company would be selling off its position in FTX's native FTT token; on Nov. 2, a CoinDesk article revealed specifics of the inner workings of Alameda Research, a cryptocurrency trading company Bankman-Fried also owns. Two days later, news of FTX's acquisition surfaced. In a since-deleted tweet on November 7, Zhao claimed that FTX was "OK" after Bankman-Fried expressed concern over Zhao's post regarding the health of his companies. A day later, prior to the announcement of the partnership with Binance, FTX suspended withdrawals.
